Probity in Public serviceTurning towards Technology to Project Vigeye over Corruption

Presentation at Indian Institute of Technology on 30th November 2012

R. Sri Kumar, Vigilance CommissionerCentral Vigilance Commisssion,Government of Indiar.sri_kumar@nic.in

Corruption talks everywhere…

From Board rooms to streets and gullies, the all pervading Corruption is not only present but is being talked about and hotly debated

At the G-20 meeting held at Mexico in June 2012, Heads of States are reported to have talked about Corruption

Did you see BHO is very much in this picture

What is Uncle Sam saying about corruption? “Corruption stifles entrepreneurship, siphons funding away

from critical services, poor fiscal transparency makes it impossible to hold governments accountable. And if these problems go on long enough, if they run deep enough, they literally can and have been shaking societies to the core“ said the US Secretary of State Hillary Clinton .

She asked countries like India and China to join the OECD's 38-member Anti-Bribery Convention which aims at reducing corruption in developing countries by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries.

"Through our bilateral diplomacy and at the G-20, we are encouraging major economies such as China, India, Indonesia, Saudi Arabia to join the convention as well," Clinton is reported to have said in her speech at Transparency International-USA's Annual Integrity Award Dinner in March 2012.

What is OECD upto? The Organisation for Economic Cooperation and Development (OECD)

co-ordinates initiatives related to taxation issues worldwide. This Paris-based think tank in its reports presented to the G-20 leaders'

ongoing summit in Mexico in June 2012, has said that steady progress is being made in effectively tackling tax evasion issues.

"Corporate vehicles continue to play a part in a wide range of illicit activities, including tax fraud and evasion, money laundering, bribery, corruption and terrorist financing," OECD said.

To support developing countries to address international taxation issues, OECD has launched an  initiative called the 'Tax Inspectors without Borders' that would be operational by the end of 2013.

The number of signatory countries to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, is increasing rapidly.

Currently, 35 nations, including India, have inked the pact. India has moved particularly quickly to both sign and ratify, with the

result that the convention entered into force with respect to India on June 1, 2012.

The convention -- is considered a valuable tool in fighting tax evasion -- and this allows exchange of information on all taxes.

UN Convention Against Corruption-2003After having ratified the United Nations

Convention Against Corruption in May 2011, India has been putting in place all the frame work necessary to align the internal mechanisms in line with requirements of UNCAC.

The process of internal review mechanism by which independent outside experts check on India's preparedness to fight corruption could take place in the next round of review starting from 2013.

UN Convention Against Corruption –Mandatory Provisions

• Chapter II : Preventive Measures

• Chapter III : Criminalisation and Law Enforcement

• Chapter IV : International Cooperation

• Chapter V : Asset Recovery

• Chapter VI : Technical Assistance and Information Exchange

• *Implementation Review Mechanism*

Mandatory provisions different from “Shall endeavour” or “Strongly encouraged” to have provisions

UNCAC Mandatory Provisions

Article 6 Ensure existence of a body or bodies to prevent corruption (Through Knowledge dissemination and overseeing and coordinating preventive policies)

Article 9 Create a Public Procurement system based on transparency, competition, and objective selection criteria with legal recourse for violations

Article 10 Enhance transparency in public administration by such measures as publishing information and simplifying procedures for attaining access to such information

Article 11 Prevent corruption among members of the Judiciary through such measures as rules of conduct

Article 11 Take measures to enhance accounting and auditing standards in the private sector

Article 13 Promote participation of civil society in fight against corruption through ensuring effective access to information

Article 14 Institute a comprehensive regulatory mechanism to prevent money laundering and consider creating financial unit to receive analyse and disseminate reports of suspicious transactions

Chapter II : Preventive Measures

UNCAC Mandatory Provisions

Article 15 Outlaw the offering or soliciting of a bribe by a national public servant

Article 16 Outlaw the promise, offering or giving of a bribe to a foreign public official

Article 17 Outlaw embezzelement

Article 23 Outlaw Money laundering

Article 25 and 27 Ensure obstruction to corruption investigation and attempts to commit corrupt acts are criminal offences

Article 29 Provide for long statute for limitations for bribery and other corrupt acts especially when offender evades prosecution

Article 30 Make penalties commensurate with gravity of offences and immunities for public officials are minimised and discretion in this regard takes into account the need to deter corruption

Article 32 Take measures to ensure protection of whistleblowers

Article 31 and 35 Establish procedures to freeze, seize, and confiscate the proceeds of corrupt acts and permit those injured by corrupt acts to initiate an action for damages

Article 40 Remove any banking secrecy laws to investigating corruption

Chapter III: Criminalisation and Law Enforcement

UNCAC Mandatory Provisions

Article 46 Cooperate with other governments on anti corruption investigations, prosecutions, and judicial proceedings in relation to convention offences

Article 48 Enhance the effectiveness of communications between law enforcement bodies to facilitate secure and rapid exchange of information

TEAMONEWORLD

Chapter IV : International Cooperation

UNCAC Mandatory ProvisionsChapter V : Asset

Recovery

• Article 52 Require financial institutions to conduct enhanced scrutiny of accounts maintained by or on behalf of prominent public officials

• Article 55 and 57 Ensure that the proceeds of corrupt acts committed in other states can be confiscated and returned

• www.cmi.no

SIEMENS WILL PAY FOR CORRUPT PRACTICES IN GREECE

German electronics company Siemens has agreed to pay about 270 million euro to the Greek state in order to settle a legal action over bribing Greek officials.

Siemens promised to pay 80 million euros for debt repayments, 90 million will be spent on compensation of losses. Siemens will also invest about 100 million euro in academic and research programs.

Siemens is the first German company to officially apologized for corrupt practices used by the firm in the past.

In response, the Greek Government promised not to file any further claims against the company and allow it to bid for new orders.

The investigation by the Greek authorities in 2007-2011 revealed Siemens bribed officials during 1997-2002 to get telecoms as well security contracts for the 2004 Athens Olympics. The former Transport Minister, Tassos Mantelis admitted receiving the equivalent of 100,000 euros from Siemens in 1998.

It wasn't the first time Siemens was involved in a corruption scandal. The company paid about 1 billion euro in penalties for bribery accusations in the US and Germany. Several German companies including Daimler, Ferrostaal, Deutsche Bahn and Deutsche Telekom have been accused in bribing officials around the world.

RT.com 09/04/2012

UNCAC Mandatory Provisions

Article 60 Implement training programmes for personnel responsible for preventing and combatting corruption

Article 62 Make concrete efforts to enhance financial, material and technical assistance to support developing countries’ efforts to implement the convention

Chapter VI : Technical Assistance and Information Exchange

UNCAC and IndiaUNCAC is a tool accepted

internationally to fight the scourge of corruption

It provides for a framework and opportunity to imbibe best practices from other parts of the world

It provides for mutual assistance and building a TEAM ONE WORLD working with TEAM INDIA

It is NOT a substitute for WILL to bring about reforms internally

Five pronged strategy to fight corruptionPunitive VigilancePreventive VigilanceProactive VigilancePredictive VigilanceParticipative vigilance

Prevention of Corruption –stages

• Legislature - Law making

• Executive - Investigation and Prosecution

• Judiciary- Pronouncement of guilt after a fair Trial and appeals and sentencing

• Media- Watch dog role

• People - the Sovereign role

• People are out on the streets crying for stern measures to deal with corruption effectively

Corruption everywhere….We do not live only in an age

where there is Corruption everywhere…

We also live in an age of Information!

In 2005, the world's digital data was pegged at 130 Exabytes. What is it today?

Did you see …Did you know 3.0 ? on Youtube ? -to understand the speed with which data explosion is taking place

You can see it now by clicking on the link above!

Project VIGEYE : 9223174440for empowering citizensWhistleblower mechanismHelp encourage citizens to

report on corruptionStop Cribbing, Act Today on

Corruptionwww.vigeye.inwww.vigeye.comwww.cvc.nic.in

Leveraging Technology to fight corruptionCloud computingCrowd SourcingData collection @ source followed

by validationCommunication at the speed of

thoughtBig data Storage and security

issuesBusiness intelligence and

analytics

In this age of Information explosion, how do you handle Data to have actionable intelligence?Data when processed become

InformationInformation when analysed

becomes IntelligenceIntelligence when useful is called

Actionable IntelligenceData processing has three

important prerequisites so that it can become actionable intelligence!

Data warehousing is NOT enough

◦ You need to read data in a meaningful way

◦ You need to democratize data by making it available across stakeholders and

◦ Only then you can process data to actionable intelligence that can answer business questions, which impact market operations.

The three important steps after data warehousing are data visualization, data democratization and actionable intelligence phase of ‘storytelling’ to answer the vexing questions of Why? and What if?

CVCMARK as the framework

Real time data captureConstant data validation and updation

to stay meaningfulData of any type- text, sound, picture,

video…Data captured at source is most

valuable data as it is less prone to being corrupted

Data validation is an ongoing process as over Time, values change and data also undergoes transformation

www.vigeyegpms.org

Human Touch!Ethics Value systemEducationHome

environment

Thank youQuestion TimeFirst question from me!What is Article 51A (j)

Fundamental Duty of Indian Citizens, i.e. “to strive towards excellence in all spheres of individual and collective activity so that the nation constantly rises to higher levels of endeavor and achievement.”

Article 51A (j) of the Indian Constitution